Energy savings insurance addresses the “energy performance gap” that exists in commercial energy efficiency projects by guaranteeing energy savings. Energy savings insurance reduces risk for owners and helps contractors ensure that large, multi-measure energy efficiency projects deliver their expected returns on investment (ROI).

Energy Savings Insurance

If you’re looking for energy savings insurance, you’re in the right place. Whether you’re an ESCO or smaller energy efficiency contractor or solar sub-contractor, you can get the benefits of energy savings insurance for your projects:

  1. Guaranteed performance

  2. Affordable premiums

  3. Multi-year terms

  4. Multi-measure projects OK (LED lighting, HVAC, controls, insulation, windows, CoGen/CHP, etc.)

  5. Financing available

  6. Easy underwriting process

Energy Savings Insurance hands on blueprints

How Does Energy Savings Insurance Work?

Energy savings insurance (aka “ESI”) guarantees energy conservation measure (ECM) savings in large energy efficiency projects. This solves the energy performance gap problem, thereby reducing risk for owners, contractors and lenders…

ESI is underwritten by engineers experienced in energy efficiency risk and backed by A+ rated insurance carriers by A.M Best.  Underwriters examine ECM technical documentation, M&V plans, facility descriptions, historical utility bills and more in the underwriting process. Download the FREE “Contractor’s Energy Savings Insurance Checklist” for a list of requirements. Once a project policy is bound, if an energy efficiency shortfall occurs, the policy is triggered, paying the customer the difference.

Building owners benefit from having an insurance policy backed by a A+ rated insurance carrier. Lenders benefit from having energy efficiency insurance in place because it reduces default risk and increases creditworthiness. Contractors benefit by getting more deals done, and potentially helping to reduce a borrower’s cost of debt, such as in a CPACE financing

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What Does Energy Savings Insurance Cost?

The cost of energy savings insurance is 2%-6%, or more, of the projected energy savings of a project. For example, if a project is projected to save $200,000 per year, energy savings insurance could guarantee $1,000,000 of savings over five years.

To guarantee the majority of the $1,000,000 in energy savings performance over five years, the contractor invests in energy savings insurance for a 4% one time premium ($40,000) which is financed. It is common for the contractor to pay the premium, with the client (building owner) named as the beneficiary on the policy.

Energy savings insurance will not make sense for every energy efficiency project… Projects must be large enough to justify the premium to underwrite a policy.


Get energy savings insurance for your projects today and benefit from an affordable, comprehensive insurance program. Click “GET A QUOTE” which sends me an email, or call 203-200-0445 and I will answer any questions you may have.